Ford has decided to stop the production of the F-150 Lightning as part of a major rethink of its EV plans.

Ford Motor Co. has pulled the plug on a 9.6 trillion ($6.5 billion) battery deal with LG Energy Solutions Ltd. after the US manufacturer decided to rethink its EV plans. Ford cancelled the plans and notified the same to LG on Wednesday, as said by the South Korean company in a regulatory filing in Seoul. 

The invested amount in the agreement is equivalent to more than one third of the LG’s total revenue last year. LG is the latest company to become a victim of Ford’s rethinking on its EV strategies as the US manufacturer recently clarified that it would take $19.5 billion in charges related to the business and they would be focussing on scrapping the electric F-Series truck. 

The company is also breaking the agreement with its US battery venture with Korean SK Innovation Co.’s battery unit SK On. 

Impact of Ford’s Decision

Ford’s decision of pulling the plug away from EVs will have two major impacts, the fact that the EV era is entering a more uncertain phase. 

On the other hand, the European Commission is backing away from their claims that this is the world’s most aggressive timeline to eradicate internal-combustion engines, granting more time for consumers to transition from gasoline to electric mobility. 

Ford started reducing orders from battery suppliers last year in order to incur from their losses from EVs. LG Energy shares also faced a significant drop by 5.4% in pre-market trading on Thursday. It slashed by 0.6% on Wednesday before the announcement.